Concentrated marketing

From CEOpedia | Management online

Concentrated Marketing is a strategy in market segmentation when a small part of the market is chosen and a specific offer is created for that audience alone. This type of marketing is especially fitting for small and medium sized enterprises, which do not possess enough resources to grasp a wider portion of the market. Concentrated Marketing allows them to utilize those resources effectively and target them to the dedicated segment of the market. If the strategy is carried out successfully, an organization can become a sole leader in that niche[1].

Characteristics of Concentrated Marketing

There are many features of Concentrated Marketing, describing the strategy, its main attributes. The most significant characteristics are presented below[2].

  • Concentrated Marketing requires an enterprise to settle on one consumer segment and target all marketing efforts to that audience. Efforts are well organised into a plan that satisfies preferences and need of the respective customers.
  • The strategy of Concentrated Marketing is predominantly used in smaller sized companies. It does not require large volumes of production or promotion. Therefore, SME's usually have enough resources to adopt this approach.
  • In order to succeed with Concentrated Marketing, organizations have to invest into researching the current market they are entering, as well as competing firms that already exist and the ones that could emerge. Strong and weak sides should be identified and taken into consideration when creating the offer and the marketing plan. The product/ offer needs to be far more superior to the opponent, since the targeted group of customers is smaller and homogenic.
  • The first step of Concentrated Marketing is to identify that small part of market. It is usually relatively easy, since those little segments are untouched by giants in the industry, as big companies look for a large audience to maximize sales.
  • Concentrated Marketing also does not involve expansion, which is inherent to many other strategies. Consequently. all financial resources can be targeted towards upgrading the product and maximizing its value for the customers.

Examples of Concentrated Marketing

There are many examples of companies employing the Concentrated Marketing strategy, some of the most prominent and well-known ones are presented below[3].

Rolls Royce is a company that produces luxury cars, which is famous for its exclusivity and extremely high price range. The Rolls Royce is perceived globally as a brand of highest possible value and status. In order to gain such reputation and acquire a respective position in the industry, the company used Concentrated Marketing strategy. Their target audience is very selective and includes a very narrow portion of society. Rolls Royce focuses all their advertising efforts towards that audience, with the marketing techniques catered to their preferences. Those being five stars hotels, exclusive events, high-profile parties, etc.

Rolex is a manufacturer of luxury watches. It is certainly the most recognizable brand in this industry around the globe. Concentrated Marketing strategy is how the company remains in a leadership position throughout many decades. Rolex is perceived in the minds of the consumers as an exclusivity, only available to the few in the society. The firm targets their products to a very limited portion of the market, consumers with available resources and status. Luxury events, exclusive gatherings and parties are usually the places where the company's watches are being promoted to the audience[4].


  1. (2010), Richard M.S. Wilson, Strategic Marketing Planning, Published by Routledge, p. 369-370
  2. (2013), Ayantunji Gbadamosi, Principles of Marketing: A Value-Based Approach, Published by Macmillan International Higher Education, p. 156
  3. (2018), Cristina Calvo Porral, John L. Stanton, Principles of Marketing, Published by ESIC, abstract 4.5.3-4.5.4
  4. (2010), Rosalind Masterson, David Pickton, Marketing: An Introduction, Published by SAGE, p. 147


Author: Daria Boiko